http://www.cognizant.com/fourwalls Cognizant's report, "Innovation Beyond the Four Walls: Breaking Down Innovation Barriers," reveals that a majority of corporations are increasingly using social platforms, virtual communications, and collaboration tools to build new types of innovation ecosystems to gain insights, ideas and inspiration from both employees as well as external sources, including customers, partners, and even competitors.

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A survey conducted by Cognizant
conducted a survey in association
with Forbes Insights
©2012, Cognizant

2. Powerful forces of change are redefining the business landscape…
Globalization The Millennial generation
Companies can now access Reshaping how business is
expertise, capabilities, conducted both inside (as
customers and resources employees) and outside of
anywhere they wish the organization (as
customers)
Virtualization Cloud, mobility, social tools
and broadband
Platforms of collaboration
that are enabling real-time Enable a transformative new
teamwork between project computing and delivery
members regardless of time model
or place
| ©2012, Cognizant Technology Solutions
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3. Given these changing market forces, Cognizant conducted a
survey in association with Forbes Insights to review how
corporations are addressing innovation
Hypothesis: Innovation is no longer coming just from
within the four-walls of an organization. Rather, it is
coming from a sphere of networks (fellow employees,
colleagues, LinkedIn contacts, customers and partners).
New virtualized and collaborative models, methods and
tools are enabling businesses to take advantage of these
multiple spheres of networks and encouraging use to
drive innovation.
About the Study: A global survey of 300+ executives
evenly distributed across the US and Europe was conducted
to examine the collaboration efforts and tools utilized to
foster and expand innovation outside the organization’s
traditional four walls.
To obtain the full report: www.cognizant.com/fourwalls
| ©2012, Cognizant Technology Solutions
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4. Hybrid innovation models are more prevalent than models that
rely solely or mostly on internal resources
• Corporations are utilizing a hybrid approach for both creating and implementing
new ideas
• Corporations are recognizing the value an internal and external perspective
brings to innovation
How does your company leverage internal vs. How does your company leverage internal vs.
external resources for creating ideas? external resources for implementing ideas?
| ©2012, Cognizant Technology Solutions
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5. There is a sense of urgency to reach outside the four walls for
innovation
• Internal collaboration systems
remain the most popular tools
for fostering innovation but
executives’ focus is turning to
tools and platforms that
enable collaboration with
external resources
• Over the next two years more
executives report they will
open up innovation platforms
to communicate and cooperate
with more external resources
than with internal resources
Does your company use any of the following tactics to gather information and
ideas for innovation?
| ©2012, Cognizant Technology Solutions
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6. Organizations use a variety of virtual tools to communicate with
internal and external resources
• The rise of the virtual world and social media requires the creation of new
communication platforms
• The range of tools available is vast
• A key success factor in generating and implementing innovative ideas is selecting which
tools are productive and how and where they should be deployed
| ©2012, Cognizant Technology Solutions
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7. Fostering innovation is a complex process and complexity
increases the more internal and external resources are
intermingled
CEO Backing Helps…
• The success of the innovation
process depends not only on the
functioning of the applied models
Innovation is getting attention from the top. and systems (often involving new
Approximately one-third of survey respondents technologies) but most critically on
identified the CEO as the person primarily the people involved and their ability
to create ideas
responsible for fostering innovation.
• Measuring ROI is challenging,
making support from the top of the
organization all the more critical
• Notwithstanding how well conceived
and designed the innovation process
may be, to succeed fully innovation
efforts need a strong leader
| ©2012, Cognizant Technology Solutions
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8. Corporations are recognizing the crucial role customers play in
the innovation process
• Organizations have
been quick to adopt
new innovation
structures that involve
customers in
innovation efforts
• This trend is likely to
continue as
organizations that
combine internal
innovation teams with
customers are more
satisfied with
performance than
How satisfied are you with your company’s performance in the following innovation areas? those that do not
include customers in
the innovation process
How is your company structured to foster innovation?
| ©2012, Cognizant Technology Solutions
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9. In Summary…..
 The emerging hybrid organization with its integrated approach will include a
broad ecosystem beyond the organization itself
 Organizations will need to leverage new technologies like social media and
virtual tools and ensure that processes, structure and infrastructure facilitate
and embrace inputs beyond the four walls of the organization
 Support from the top of the organization is important to ensuring the right
resources are allocated to the innovation process
 Despite the fears over leakage of proprietary information, embracing virtual
tools and social media will enable organizations to convert more transparent
and focused forms of ideation and knowledge sharing into tangible innovations
that drive business performance over the long term
To read the full report and read what specific companies are
doing go to: www.cognizant.com/fourwalls
| ©2012, Cognizant Technology Solutions
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